IS YOUR SALESFORCE PREPARED TO PRESENT YOUR COMPANY IN A PROFESIONAL WAY? (PART 5)
PROBLEM SOLVING
When sales are down, companies must take a decisive action. Some companies engage a careful analysis of their situation to help them determine the cause of their problems, but many companies respond in a reactive way without learning exactly why they are having trouble meeting their marketing objectives. The truth is, the vast majority of problems related to unrealized sales performance are a function of flawed marketing programs, not incompetent salespeople.
Advertising and Corporate Communication – Advertising and promotional campaigns are usually the first line of defense against upper management’s wrath when sales are down. Launching a new promotional campaign gets everyone off the hook, at least for a while. Unfortunately, as often as not, a new advertising campaign diverts attention from what is actually causing week sales, which is almost always a critical marketing factor, such as better competitive product, which has not been identified or is not being addressed.
Pricing Strategy – It is easy to blame weak sales on aggressive competitive pricing. But pricing is only one of the factors that customers use to make their purchasing decisions. It is a mistake to change your company’s pricing strategy until you identify and evaluate at least three other potential causes of your problem.
Reorganize the Sales Organization – If 10 percent of your sales force is performing under quota, it may be time to recruit new talent. But when 50 percent of your company’s sales force is performing poorly, it is time to re-evaluate your company’s marketing strategy.
White Knight – Bringing in a new sales manager to “turn around” your sales team can be an effective remedy if your sales manager is incompetent or is extremely difficult to work with. But replacing a sales manager will not improve sales if your marketing strategy is unsound or if your company is not providing the resources that your sales force needs to help it leverage its selling efforts. And your company may lose whatever sales momentum it has while your new sales manager gets up to speed on your company’s products, procedures, and policies; develops new objectives, wins his or her sales team’s confidence, and becomes familiar with your company’s customer base.
Redesign the Sales Compensation Plan – In some selling situations, it is possible to spur sales by increasing sales commissions and providing other sales incentives. However, this strategy will fail unless your marketing strategy is sound,
Change Product Strategy – To ensure product demand, your company must track market trends, competitors’ strategies, and your customers’ ever-changing product requirements. If your products are less desirable than your competitors’ products, you may need to reposition your products or develop an entirely new product strategy.
Distribution Channels – Restructuring a sales channel is like replacing a sales manager; it should only be done as a last resort, and it inevitably results in some loss of customer goodwill.
Strategic Positioning – If your company loses its focus on its primary business objectives, it may lose its competitive advantage. The major challenge that faces sales and marketing managers is not developing better marketing strategies – it is properly executing the marketing strategies that have already been adopted.
Step 13: Evaluate your sales and marketing department’s workload.
Most employees work best when they work a reasonable number of hours each week. When employees work overnight hours week after week, their stress levels rise and their health begin to suffer.
The best prescription for a successful business is to hire the best sales and marketing personnel that are available, to provide them with the resources that they need to be successful, and to put incentives in place that motivate them to make their best efforts.
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